What's new in the mortgage market for 2013

A roundup of the latest new products and rates launched since the start of the year

Yorkshire Building Society

The Yorkshire is reducing interest rates by up to 0.35per cent on a wide range of its products, including fixed rate, tracker and offset mortgages at 75 per cent, 85 per cent and 90 per cent LTV (loan to value).

Best buy fixed rate mortgages at 75 per cent LTV include a two year fixed rate at 2.49 per cent, a three year at 2.69 per cent and a five year at 2.99 per cent.

Borrowers with a smaller deposit can benefit from a best buy two year fixed rate mortgage at 3.79 per cent up to 90 per cent LTV. All these products have a £995 fee but the Yorkshire also offers lower fee alternatives with incentives such as cashback or free valuations and legal service for borrowers trying to reduce their upfront costs.

Barclays

From 14 January Barclays will introduce a mortgage to help boost the first time buyer market, giving new buyers access to affordable mortgages with a five per cent deposit. It provides first time buyers with a three year fixed rate available with a five per cent deposit at 4.69 per cent, while their family opens a savings account linked to the mortgage into which they put 10 per cent of the purchase price.  When the three year fixed rate ends the savings are returned to the family.

There will also be a three year fixed rate deal for those with a 30 per cent deposit, which sees the largest cut of 1 per cent to 2.89 per cent. The two and five year fixed rates Barclays will be offering are priced at 2.39 per cent and 3.39 per cent, for those with a 40 and 30 per cent deposit respectively.

Leeds Building Society
Leeds Building Society has changed its current 2 Year fixed rate mortgage deals into a range of New Year sale products. The completion fee of £800 has been removed and a free standard valuation up to £335 added. In addition, the Society is offering free legal services for standard re-mortgages.

The Society's 2 Year Fixed Rate products are available at current rates of 2.54 per cent up to 75 per cent loan to value (LTV), at 2.94 per cent up to 80 per cent LTV and at 3.54 per cent up to 85 per cent LTV.  All tiers of the product allow 10 per cent capital repayments each year without penalty, have no higher lending charge and a booking fee of £199.

Cambridge Building Society

Key changes include:

* Reduced rates across the range

* A range of ‘fee free' re-mortgage deals - no application fee and no standard legal/valuation fees

* Product completion fees can now be added to the loan above the LTV tier

Mortgage Trust

Among nine new products there are two fixed rate two year products and three two year trackers available for purchase and remortgage cases. The new range also includes four remortgage only products - two trackers and two fixed rates - which are available with a £300 contribution to legal fees. All new products come with a free valuation.

Coventry Building Society

Coventry Building Society has a range of 2 and 5 year fixed rates, available from 65 per cent LTV to 85 per cent LTV. The new range allows overpayments of 10 per cent on all new products and includes a legal and valuation package for remortgages.

Halifax

Changes include:

* A new 2 year fixed rate mortgage at 90 per cent LTV launched at 4.99 per cent with £995 fee for first time buyers

* Reductions of 0.15 per cent on 2 year tracker mortgages for homemovers and remortgage customers, with rates now starting at 2.64 per cent

* New 5 year fixed rates with £995 fees available up to 90 per cent LTV for homemovers and 85 per cent LTV remortgage customers with rates starting at 3.34 per cent and 3.39 per cent with a £995 fee

* A new 90 per cent LTV option for homemovers and first time buyers in the form of a 5 year fixed rate year product at 5.69 per cent ( with £995 fee for homemovers and no fee for first time buyers)

In addition, Halifax is offering first time buyers £1,000 cashback and no product fees on selected 2, 5 and 7 year 75 per cent to 90 per cent LTV fixed rate products.

Norwich & Peterborough Building Society

New fixed rate mortgage deals from N&P include a five year fix at 3.19 per cent at 75 per cent LTV. For borrowers wanting to fix for a shorter term, N&P has a three year fixed rate mortgage at 2.84%, also at 75% LTV.